First of all, Dealers are separate bodies who are just registered with the manufacturers to sell there products on dealers showrooms. Dealers buy from the factory and sell the vehicle to there customers adding there expenses and profits
Now Lets breakup vehicle prices
Ex-Showroom Price :
Dealers buy vehicles from factory at Ex-Factory price, when the trucks reaches the showroom, the price including Ex-Factory price, Transportation, Dealers margin, etc is called Ex-showroom price.
Handling/Logistics/Parking charges :
These charges are not included in every showroom but mostly on Metro cities & few Major cities these charges are also added. Now the price of vehicle is Ex-Showroom + Handling/Logistics/Parking charges.
Insurance :
In India, we have a rule that when a vehicle rolls out of the showroom it should be covered by Insurance. So add Insurance price to the above price.
But it is not mandatory to take Insurance policy in the showroom, you can take the policy from whichever place you like but vehicle should be covered with Insurance before leaving showroom and it should be of 1 year at least.
TCS (Tax Collection at Source) :
You need to pay TCS of 1%, if the vehicle's Ex-Showroom price is more than 10 Lakh Rupees. But it is refundable if you file IT returns.
RTO/Registration Charges :
Like Insurance it is mandatory for a vehicle to be registered before it leaves the showroom. Basically there are two types of registration
i) Temporary Registration : It is registration for one month & after this period, registration expires. If you are not registered within this period you are liable for fine on monthly basis.
This is used mainly when you need a special number and it is yet to come and you want to register that number when it comes or You have bought vehicle from a non-local showroom and you want to register your vehicle in your local RTO.
ii) Permanent Registration : This is Permanent registration number for the vehicle and is valid for life time.
Permanent registration charges varies from vehicle to vehicle and in few states from fuel types also.
Accessories/RSA/Extended Warranty :
These are completely non-mandatory, you can take your vehicle even without these
i) Accessories : These are add-ons to your vehicle which you can completely deny or negotiate or even get them for free.
ii) RSA(Road Side Assistance) : By the name itself you can understand what it is. But make sure your Insurance company is offering RSA or not because insurance companies offer RSA at much cheaper rates than the vehicle dealer and few times RSA is given for free for some period of time by the manufacturer itself.
I prefer to take this service if ytou are not familiar with any of the minor repair works and you travel solo especially cars.
iii) Extended Warranty : This is something the sales person insist you to take by telling false stories and illogical facts, Indians take there vehicles seriously hence they fall prey to the words of sales executive. This can also can be denied
So Your OnRoad Prices includes ExShowroom price, Handling/Parking price, Insurance price, TCS, RTO Charges and Accessories/RSA/Extended Warranty.
Now Lets breakup vehicle prices
Ex-Showroom Price :
Dealers buy vehicles from factory at Ex-Factory price, when the trucks reaches the showroom, the price including Ex-Factory price, Transportation, Dealers margin, etc is called Ex-showroom price.
Handling/Logistics/Parking charges :
These charges are not included in every showroom but mostly on Metro cities & few Major cities these charges are also added. Now the price of vehicle is Ex-Showroom + Handling/Logistics/Parking charges.
Insurance :
In India, we have a rule that when a vehicle rolls out of the showroom it should be covered by Insurance. So add Insurance price to the above price.
But it is not mandatory to take Insurance policy in the showroom, you can take the policy from whichever place you like but vehicle should be covered with Insurance before leaving showroom and it should be of 1 year at least.
TCS (Tax Collection at Source) :
You need to pay TCS of 1%, if the vehicle's Ex-Showroom price is more than 10 Lakh Rupees. But it is refundable if you file IT returns.
RTO/Registration Charges :
Like Insurance it is mandatory for a vehicle to be registered before it leaves the showroom. Basically there are two types of registration
i) Temporary Registration : It is registration for one month & after this period, registration expires. If you are not registered within this period you are liable for fine on monthly basis.
This is used mainly when you need a special number and it is yet to come and you want to register that number when it comes or You have bought vehicle from a non-local showroom and you want to register your vehicle in your local RTO.
ii) Permanent Registration : This is Permanent registration number for the vehicle and is valid for life time.
Permanent registration charges varies from vehicle to vehicle and in few states from fuel types also.
Accessories/RSA/Extended Warranty :
These are completely non-mandatory, you can take your vehicle even without these
i) Accessories : These are add-ons to your vehicle which you can completely deny or negotiate or even get them for free.
ii) RSA(Road Side Assistance) : By the name itself you can understand what it is. But make sure your Insurance company is offering RSA or not because insurance companies offer RSA at much cheaper rates than the vehicle dealer and few times RSA is given for free for some period of time by the manufacturer itself.
I prefer to take this service if ytou are not familiar with any of the minor repair works and you travel solo especially cars.
iii) Extended Warranty : This is something the sales person insist you to take by telling false stories and illogical facts, Indians take there vehicles seriously hence they fall prey to the words of sales executive. This can also can be denied
So Your OnRoad Prices includes ExShowroom price, Handling/Parking price, Insurance price, TCS, RTO Charges and Accessories/RSA/Extended Warranty.
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